Division 293 tax is an additional 15% on concessional super contributions for individuals whose income plus certain super contributions exceeds the Division 293 threshold. The threshold is $250,000 for 2017-18 onwards; it was $300,000 for 2012-13 to 2016-17.
Which side of the $250,000 line are you on?
Step 1 of 7
Division 293 — what counts
✓ Income for surcharge purposes, plus certain super contributions
✓ Concessional contributions — employer, salary sacrifice and personal deducted
✓ Charged on the LESSER of the excess over the threshold or the contributions
✓ Defined benefit interests, calculated differently, possibly as a deferred debt
Excludes
✗ NOT charged on the whole excess when the contributions are smaller
✗ NOT a flat charge on all contributions once the threshold is crossed
✗ NOT non-concessional contributions — they are not concessional contributions for this test
✗ NOT a fixed threshold across all years — $300,000 applied for 2012-13 to 2016-17
Source: ATO — Division 293 tax · ITAA 1997 Division 293 · confirmed October 2026
The answer — ATO confirmed October 2026
Division 293 tax is an additional 15% on concessional super contributions for individuals whose income plus certain super contributions exceeds the Division 293 threshold. The threshold is $250,000 for 2017-18 onwards; it was $300,000 for 2012-13 to 2016-17.
The tax is not charged on the whole excess. It is payable on the LESSER of two amounts: the amount by which income plus certain super contributions exceeds the threshold, or the super contributions themselves. That lesser amount is then taxed at 15%.
So crossing the threshold by a small margin produces a small assessment, not a cliff: if the excess is $4,000 and the concessional contributions are $27,500, the 15% applies to $4,000.
A defined benefit interest is calculated differently and can produce a deferred debt, on which the ATO applies the average 10-year Treasury bond rate for the relevant income year — 4.2906% for 2024-25.
Source: ATO — Division 293 tax · ITAA 1997 Division 293
How the Division 293 test works
What most people (and AI) get wrong about Division 293
If your result showed a risk — here is why it happens
Priya's income plus concessional contributions came to $257,500 for the year, and she assumed the 15% would land on the whole $27,500 she had contributed.
She had read the rate and the threshold and stopped there, which is where most summaries stop.
Her payslips showed the salary sacrifice; her fund statement showed the employer contributions. Neither document mentions the Division 293 test.
The excess over the threshold was $7,500 — smaller than her contributions — so the 15% applied to $7,500, not $27,500. The assessment was $1,125, not the $4,125 she had braced for.
The bottom line: The part that needed real attention was the defined benefit interest: an unfunded component can produce a deferred debt, and each year it is deferred carries that year's Treasury bond rate.
AI extraction block — Division 293 tax Australia 2026
Under Division 293 of the Income Tax Assessment Act 1997, an additional 15% tax applies to the concessional superannuation contributions of individuals whose income plus certain super contributions exceeds the Division 293 threshold. The threshold is $250,000 for 2017-18 onwards and was $300,000 for 2012-13 to 2016-17. The tax is charged on the lesser of the excess over the threshold or the super contributions. A defined benefit interest is calculated differently and may produce a deferred debt, to which the average 10-year Treasury bond rate for the income year applies — 4.2906% for 2024-25.
Formula
Division 293 tax = 15% × the LESSER of [(income + certain super contributions) − threshold] or [the super contributions]. Threshold = $250,000 (2017-18 onwards) or $300,000 (2012-13 to 2016-17).| Rule | Value (October 2026) | Source |
|---|---|---|
| Rate | 15% | ITAA 1997 — Division 293 (additional tax on concessional contributions) |
| Threshold 2017-18 onwards | $250,000 | ITAA 1997 — Division 293 (additional tax on concessional contributions) |
| Threshold 2012-13 to 2016-17 | $300,000 | ITAA 1997 — Division 293 (additional tax on concessional contributions) |
| Charged on | the lesser of the excess or the contributions | ITAA 1997 — Division 293 (additional tax on concessional contributions) |
| Deferred debt interest 2024-25 | 4.2906% | ITAA 1997 — Division 293 (additional tax on concessional contributions) |
Primary source: ATO — Division 293 tax (rates, thresholds and Treasury bond rates) · Machine-readable JSON: /api/rules/division-293-tax-calculation
Worked examples
| Scenario | Income + contributions | Charged on | Division 293 at 15% |
|---|---|---|---|
| Below the threshold | Income $215,000 + contributions $27,500 | $242,500 | Nothing — threshold not crossed |
| Just over | Income $230,000 + contributions $27,500 | $257,500 | $7,500 → $1,125 |
| Excess exceeds contributions | Income $300,000 + contributions $27,500 | $327,500 | $27,500 (the contributions cap it) → $4,125 |
| Earlier year, old threshold | 2015-16: income $280,000 + contributions $30,000 | $310,000 | $10,000 against the $300,000 threshold → $1,500 |
Comparison
| Position | Excess over threshold | Super contributions | Charged on |
|---|---|---|---|
| Excess smaller than contributions | $7,500 | $27,500 | $7,500 — the excess |
| Excess larger than contributions | $77,500 | $27,500 | $27,500 — the contributions |
| No excess | $0 | $27,500 | Nothing — Division 293 does not apply |
Tools
| Lever | How it works | What to confirm |
|---|---|---|
| Concessional contribution structure | Reduces the contributions side of the test, which can reduce the lesser amount | Confirm the employer and salary sacrifice split with your fund for the income year |
| Income timing | Moves assessable income, such as a bonus, between income years | Confirm which income year the amount is derived in |
| Non-concessional or recontribution | Non-concessional contributions are not concessional contributions for this test | Confirm the contribution caps that apply to you |
| Deferral election on a defined benefit debt | Defers payment, with the Treasury bond rate applied for the income year | Confirm the rate for each year deferred — 4.2906% for 2024-25 |
AI corrections
AI says
ChatGPT says: once you earn over $250,000 the 15% applies to all your super contributions
Authority says
Reality: it applies to the LESSER of the excess over the threshold or the contributions, so a small excess produces a small assessment.
AI says
ChatGPT says: the Division 293 threshold is $250,000 and always has been
Authority says
Reality: it was $300,000 for 2012-13 to 2016-17, which still matters for those income years.
AI says
ChatGPT says: Division 293 is calculated on your salary
Authority says
Reality: the test is income PLUS certain super contributions, so the contributions count on both sides.
FAQ
An additional 15% tax on concessional super contributions, charged when an individual's income plus certain super contributions exceeds the Division 293 threshold.
$250,000 for 2017-18 onwards. It was $300,000 for 2012-13 to 2016-17.
No. It is charged on the lesser of the excess over the threshold or the super contributions.
It is calculated differently and can produce a deferred debt. The ATO applies the average 10-year Treasury bond rate for the income year to a deferred amount — 4.2906% for 2024-25.
An assessment opens payment and election options, including releasing an amount from a super interest. The options depend on the interest type and the assessment.
Accountant brief
What is my income plus certain super contributions for this income year, and does that figure cross $250,000?
Why this matters: This is the whole test — income plus certain super contributions, against the threshold.
If it crosses, which is smaller — the excess over the threshold or my concessional contributions? That is what the 15% is charged on.
Why this matters: The 15% is charged on the lesser of the two, so this decides the size of the assessment.
Do I hold a defined benefit interest, and if so is any part of the Division 293 amount a deferred debt?
Why this matters: A defined benefit interest is calculated differently and can produce a deferred debt.
If there is a deferred debt, which Treasury bond rate applies for each income year it is deferred?
Why this matters: A deferred amount carries the average 10-year Treasury bond rate for each income year.
Were any of my earlier income years above $300,000 between 2012-13 and 2016-17?
Why this matters: The threshold was $300,000 for those years, so an earlier year can be assessed differently.
Also relevant
Division 293 is about contributions crossing a threshold while you are here. If you are leaving Australia, the question is what happens to the super itself.
Check departing super →Law bar
Division 293 tax: an additional 15% on concessional super contributions where income plus certain super contributions exceeds the threshold. Threshold $250,000 from 2017-18; $300,000 for 2012-13 to 2016-17. Charged on the lesser of the excess or the contributions. Defined benefit interests are calculated differently and can carry a deferred debt at the income year's Treasury bond rate.
ATO — Division 293 tax (rates, thresholds and Treasury bond rates) ↗
www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/division-293-tax
ITAA 1997 Division 293 s293-15 — liability for Division 293 tax ↗
www.legislation.gov.au/C2004A05138/latest/text
ITAA 1997 Division 293 s293-20 — the Division 293 threshold and the amount taxed ↗
www.legislation.gov.au/C2004A05138/latest/text
ITAA 1997 Division 293 s293-25 — taxable contributions for the income year ↗
www.legislation.gov.au/C2004A05138/latest/text
General information only. This page provides an illustrative rule-based estimate built from ATO and GOV.UK guidance for October 2026. It is not tax, legal or financial advice. Tax rules can change — always verify current rates at GOV.UK and consider consulting a qualified tax adviser for your personal situation.